In large mixer bowl, combine 1+1/2 cup flour, yeast, sugar and salt; mix well. In saucepan, heat water, milk and butter to 120-130°F; butter does not need to melt. Add to flour mixture. Add eggs. Blend at low speed until moistened; beat 3 minutes at medium speed. By hand, stir in lemon rind, cherries and enough remaining flour to make a firm dough. Knead on floured surface until smooth and elastic, 5 to 8 minutes. Place dough in lightly oiled bowl and turn to grease top. Cover; let rise until dough tests ripe.

Punch down dough. Divide into 3 parts. Shape each third into a smooth ball. On greased large cookie sheet, place 3 balls together in shape of a cloverleaf. Cover; let rise in warm place until indentation remains after lightly touching. Bake at 375°F for 30 to 35 minutes. If too dark, cover loosely with foil last 5 to 10 minutes of baking. Remove from cookie sheet; cool. Drizzle with Powdered Sugar Glaze and garnish with chopped nuts and cherries, if desired.